{"id":657111,"date":"2026-10-26T00:44:09","date_gmt":"2026-10-26T00:44:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/657111\/"},"modified":"2026-10-26T00:44:09","modified_gmt":"2026-10-26T00:44:09","slug":"corning-stock-has-lost-half-its-value-since-june-is-it-a-buy-before-its-next-report","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/657111\/","title":{"rendered":"Corning Stock Has Lost Half Its Value Since June. Is It a Buy Before Its Next Report?"},"content":{"rendered":"

Shares of glass and fiber-optics maker Corning (GLW<\/a> -0.24%) have had a wild 2026. The stock almost tripled between January and late June, closing at a record $255.69 on June 29. At roughly $125 as I write, shares are now down about 51% from that peak — including an 8% fall on Oct. 22 alone.<\/p>\n

But the company is growing fast. Corning’s second-quarter core earnings per share, its non-GAAP (adjusted)<\/a> measure, climbed 30% year over year. Management also forecast around 28% growth in the third quarter.<\/p>\n

Corning posts those third-quarter results on Tuesday, Oct. 27. And despite its recent losses, the stock’s still up over 40% for 2026.<\/p>\n

\"The<\/p>\n

Image source: The Motley Fool.<\/p>\n

What caused the drop?<\/p>\n

I’d say much of the decline reflects a stock giving back a rally that got ahead of the business.<\/p>\n

In May, Corning announced a long-term partnership with Nvidia under which it plans to grow its U.S. optical connectivity manufacturing capacity tenfold. Amazon then signed a multiyear, multibillion-dollar deal for Corning to supply optical fiber, cable, and connectivity products for its U.S. data centers.<\/p>\n

Investors poured in. At its June peak, the stock was valued at around 95 times Corning’s adjusted earnings in the prior four quarters.<\/p>\n

Shares then sank about 46% in July, including a 12% drop on July 28 — when Corning released second-quarter results with core earnings per share up 30%. Management’s third-quarter forecast put core sales growth at around 16%, a bit under the second quarter’s 17% rate.<\/p>\n

On Sept. 11, Corning signed an agreement letting it issue up to $2 billion in new shares from time to time. Shares sank around 14% the next trading day. But at today’s price, $2 billion is under 2% of what the whole company is worth (about $108 billion).<\/p>\n

October has been tough, too. Shares are down around 19% so far this month, and the Oct. 22 drop was on a day the Nasdaq Composite slid over 2%.<\/p>\n

Optical’s boom<\/p>\n

Meanwhile, the business keeps improving. And one segment explains most of it.<\/p>\n

Showing how central data centers have become to Corning, optical communications sales climbed 32% year over year to $2.07 billion in Q2. That followed growth of 24% in Q4 2025 and 36% in Q1 2026. In the segment, enterprise network sales (which include fiber products for hyperscale data centers) jumped 65%. And the segment’s net income<\/a> soared 77%.<\/p>\n

Not only did optical communications make up around 44% of Corning’s Q2 sales, compared with 39% a year before, but it also provided about $506 million of the $693 million year-over-year rise in core sales. In other words, about three-quarters of Corning’s growth came from this one segment.<\/p>\n

The shift is showing up in profits. Core earnings-per-share growth has accelerated, from 24% in Q3 2025 to 26% in Q4 and 30% in both Q1 and Q2 of 2026. Core sales growth, meanwhile, has stayed in the mid-to-high teens, so profits are rising almost twice as fast as sales. Core operating margin widened 1.9 percentage points to 20.9% in Q2.<\/p>\n

Management’s internal plan targets an annualized sales run rate of $40 billion by the end of 2030, over double the second quarter’s pace of around $19 billion.<\/p>\n

GLW<\/a> – Corning<\/p>\n

$123.69-$0.30 (-0.24%)<\/p>\n

NYSE \u00b7 As of 4:00 PM ET 10\/23\/26<\/p>\n

The stock finally looks reasonably priced<\/p>\n

The sell-off has also cut the stock’s valuation<\/a> sharply. Shares now sell at around 44 times adjusted earnings for the past four quarters, under half the price-to-earnings ratio at the June peak. Plus, they cost about 29 times analysts’ consensus 2027 earnings estimate.<\/p>\n

For a company growing core earnings per share around 30%, I think this forward price-to-earnings<\/a> ratio looks reasonable.<\/p>\n

Of course, the risks haven’t gone away. Much of Corning’s growth relies on a few tech giants continuing to spend heavily on AI<\/a> data centers, and any cutback there could hit the optical business hard. The stock has also shown it can drop 8% or more in one day. And if Corning uses its share-issuance agreement, current holders could have their stakes diluted.<\/p>\n

So, is Corning a buy ahead of Tuesday’s report?<\/p>\n

I think the sell-off has made it worth a look. Given how much the stock can swing after a report, though, I’d be comfortable taking a position here and building it over time.<\/p>\n","protected":false},"excerpt":{"rendered":"Shares of glass and fiber-optics maker Corning (GLW -0.24%) have had a wild 2026. The stock almost tripled…\n","protected":false},"author":2,"featured_media":657112,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,85,46],"class_list":["post-657111","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/657111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=657111"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/657111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/657112"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=657111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=657111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=657111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}